• Payments Canada is leading the adoption of ISO 20022 in Canada, to help institutions transition ahead of the November 2025 deadline.
• Key updates include a hybrid address format and a shift from legacy MT messages to XML-based MX messages.

Have you ever looked at your bank statement and seen a payment you don’t recognise? If so, you’re not alone. Traditional electronic payments often only include basic information, like the amount and date, leaving little insight into the payment itself. This lack of detail creates friction for everyone, from individuals managing personal finances to businesses trying to reconcile payments with invoices. 

Enter ISO 20022, the global financial messaging standard that’s set to transform the way we pay by providing richer, more structured data with every transaction. By embedding detailed remittance information, ISO 20022 makes payments more transparent, efficient and useful, not just for financial institutions but for businesses of all sizes and their customers. 

Payments Canada, the organisation which operates Canada’s national payment systems, leads the country’s adoption of ISO 20022 by offering resources, education, training and operational support for Canada’s financial ecosystem. They also manage ISO 20022 usage guidelines for our payment systems in alignment with global standards.

Payments Canada has published updated ISO 20022 message specifications for use on Lynx, Canada’s high-value payment system. These specifications were published alongside a companion document to help financial institutions prepare for changes coming in November 2025. These revised guidelines introduce enhancements, including a new hybrid postal address format developed by Swift’s Payment Market Practice Group (PMPG). 

This hybrid approach combines structured address elements, such as country and town name, with unstructured fields like address lines. It’s a practical bridge that enables organisations to start transitioning toward structured data without requiring an immediate change. Structured address formats will improve accuracy, reduce errors and support critical processes like anti-money laundering (AML) monitoring. 

Another important update is the global shift from legacy MT messages to the modern MX format, which uses XML-based messaging. As of November 2025, the coexistence period of these two message types will end, meaning some MT messages will no longer be supported. Financial institutions, payment service providers and their technology partners are strongly encouraged to prepare for this transition by updating their systems and reviewing how the changes may impact their operations. 

Amidst these transformational shifts in the way we move money, ISO 20022 will embed actionable data into every transaction. As more countries align with global standards, as Canada is well on the way to doing, payments and processes will only grow more swift, fast, and secure.

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To learn more about ISO 20022 and how Payments Canada supports its adoption, visit their website and explore their growing library of educational materials. 

You can also join over 1,900 payment leaders and innovators at The Payments Canada SUMMIT, happening 6-8 May in Toronto. Use promo code SUMM25PCVIP to save $100 off your event pass. 

The post Enhancing the way we pay: Canada’s migration to ISO 20022, and its numerous benefits appeared first on Trade Finance Global.

US Treasury yields dipped on Tuesday 4 March as markets digest the first day of President Donald Trump’s sweeping new tariffs against China, Canada, and Mexico, with both Beijing and Ottawa swiftly unveiling retaliatory measures.

China and Canada have moved decisively to counter the US tariffs that came into force at midnight US time. Trump’s duties of 25% against goods from Canada and Mexico, and 20% against Chinese imports, will affect more than £722 billion worth of US imports from America’s two biggest trading partners.

Justin Trudeau, the Canadian prime minister, announced immediate 25% tariffs on C$30 billion worth ($20.7 billion) of US imports. Ottawa further warned it would place tariffs on an additional C$125 billion ($86.2 billion) of American goods if Trump’s levies remain in place after 21 days.

“Tariffs will disrupt an incredibly successful trading relationship,” Trudeau said, noting that the US measures violate the US-Mexico-Canada free trade agreement that Trump himself signed during his first term.

China responded by targeting America’s agricultural sector, announcing fresh tariffs of up to 15% on chicken, wheat, corn and cotton imports from the US. Additional 10% tariffs will be imposed on sorghum, soya beans, pork, beef and various other US farm exports.

“The US’s unilateral tariff increase damages the multilateral trading system, increases the burden on US companies and consumers, and undermines the foundation of economic and trade cooperation between China and the US,” China’s finance ministry said in a statement.

Global markets reflected growing anxiety, with Asian indices posting losses after sharp falls in US markets on Monday. Japan’s Nikkei dropped 1.6%, Hong Kong’s Hang Seng declined 0.8%, and European markets also opened lower. The FTSE 100 fell 0.65% to 8,813 points, while France’s CAC 40 dropped 0.9%.

Both the Canadian dollar and Mexican peso fell to their lowest levels in a month. US Treasury yields reflected these tensions, with the benchmark 10-year yield slipping about 1 basis point to 4.168% as investors sought safer assets.

Economists warn that Trump’s tariff strategy could backfire on the US economy. The Peterson Institute for International Economics has described the tariffs as “the largest tax increase in at least a generation”, estimating they would cost the typical US household more than $1,200 annually.

The situation has been compared with the Smoot-Hawley Tariff Act in 1930; with some level of tariff implemented on all countries exporting to the US, and rates up to 80%, it has been credited as exacerbating the Great Depression. As was the case a century ago, American farmers already see their output suffering as tariffs that make products from other nations more competitive. 

Trump has signalled this is merely the opening salvo in his trade strategy. Steel and aluminium tariffs are set to take effect on 12 March, with “reciprocal tariffs” expected on 2 April.

The post China and Canada impose retaliatory trade tariffs against Trump appeared first on Trade Finance Global.

The assessment tool, unveiled on Thursday 17 October by the ICC’s Digital Standards Initiative (DSI) in partnership with Canada’s Digital Governance Council, aims to facilitate the adoption of Electronic Transferable Records (ETRs) across international supply chains.

The framework enables organisations to gauge whether digital platforms can reliably handle ETRs in accordance with the UN’s 2017 Model Law on Electronic Transferable Records (MLETR), as traditional paper documentation gives way to digital alternatives.

“This launch is an important first step in the development of a framework for ensuring digital trust at scale, an important pillar of the digital trade ecosystem,” said Pamela Mar, managing director of ICC DSI. 

“The reliability assessment framework is a collective effort drawing on the knowledge and work of technical and commercial experts from various entities involved in digital trust, standards, certifications and assessment.”

The tool was developed by a working group comprising standards bodies, technical specialists and industry players, with guidance from ICC DSI’s Industry Advisory Board. Several ETR service providers have already piloted the framework to evaluate its effectiveness and commercial viability.

Keith Jansa, chief executive of the Digital Governance Council of Canada, described the initiative as “groundbreaking” for its potential to advance international standardisation of digital trade services.

The framework has been released as a beta version for self-assessment, with plans for third-party certification under development. Its launch comes as more jurisdictions align their regulations with MLETR, creating a growing demand for standardised reliability assessments in digital trade.

Industry observers suggest the tool could become a key credential for digital trade service providers, accelerating the shift away from paper-based documentation in international trade.

The post ICC DSI launches Digital Trade Assessment Tool for electronic records appeared first on Trade Finance Global.

The total loans sold by EDC amount to over £600 million. This sum consists of £313 million of top-ranking class A loans (sold in early August 2024), and over £300 million of riskier class B loans (in July). Some of the latter loans were quoted as low as 27 pence in the pound. 

The loans were originally made between 2018 and 2022 to support Canadian investment abroad. An EDC spokesperson said, “We have been carefully following the recent challenges encountered by the utility and with the regulator’s recent determination and Omers’ decision to write down its stake, we are assessing the best course of action to manage our loan exposure with the company.”

The effect of Thames Water’s financial troubles permeates across the world. Ontario Municipal Employees Retirement System (Omers) has written down the value of its 31% equity stake to zero; and British Columbia Investment Management Corporation, holding an 8.7% stake, is also exposed.

Furthermore, Thames Water lost its investment-grade credit rating in July 2024, breaching its licensing conditions. The company is now under increased regulatory scrutiny from Ofwat.

Thames Water is struggling under an £18 billion debt pile and, after a year of controversy, faces pressure to upgrade its infrastructure. However, the company is under significant financial pressure: it needs to refinance over £1 billion in loans by the end of 2024.

Thames Water requires £750 million in equity by May 2025 and a further £2.5 billion by 2030. If unable to plug the drain on these financial obligations, the company faces potential renationalisation.

This development underscores the risks associated with state-backed export credit agencies supporting international investments. Particularly in utilities facing financial and regulatory pressures, leakages begin to flow out of control.

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Canada will contribute C$350 million towards project investments and an additional C$10 million for technical assistance.

The ADB will manage CANPA for Canada, aiding private companies in reducing their greenhouse gas emissions, transitioning away from carbon-intensive operations, and enhancing their climate resilience. 

The fund intends to mitigate risks to help bring viable projects to the market that may not proceed on purely commercial grounds. It also seeks to support women and girls by including them in a fair transition and will fund nature-based methods like sustainable agriculture and aquaculture to protect and restore ecosystems.

Vice-President for Market Solutions Bhargav Dasgupta said, “This fund continues and deepens our decade-long partnership with Canada to help Asia and the Pacific mobilise private capital to advance the fight against climate change. CANPA will help accelerate the region’s transition to low carbon and climate-resilient growth by lowering financing risks and making projects more commercially bankable, with a specific emphasis on empowering women and girls.”

The Asia and Pacific region, which accounts for over half of the world’s greenhouse gas emissions, faces severe threats from climate change effects, such as extreme weather events, prolonged droughts, and floods. Over 60% of the area’s workforce is employed in sectors that are highly vulnerable to climate change impacts.

CANPA encourages strategic investments, leveraging the capabilities and private sector platform of the ADB. It builds on the successes of the Canadian Climate Fund for the Private Sector in Asia (CFPS) launched in 2013 and CFPS II in 2017.

The post Canada and ADB launch C$360m fund for climate and nature in Asia appeared first on Trade Finance Global.

As international payments continue to increase in Canada, alongside the growth of international commerce, consumers and businesses alike will benefit from evolving payment innovations and standardisation. 

This includes the adoption of ISO 20022, an internationally recognised standard for financial information exchange. Recent findings from Payments Canada’s research team demonstrate the usage and challenges of international payments within the country and the scale at which this standard will benefit Canadians.

International payments are on the rise in Canada

Payments Canada’s recent research revealed that one in five people sent money internationally using their Canadian bank account over the past 12 months, representing a 33%  increase from the year prior. The leading destination for these international payments was the United States (50%). The two most popular reasons for sending money internationally were to transfer funds to another individual with a bank account in a foreign country and to pay an international retailer.

50% of Canadians aged 18-34 send money internationally once a month or more often as compared to 21% of Canadians aged 55 or over. Men are more likely than women to regularly send money internationally (40% versus 27%). In particular, 91% of younger men (aged 18-34) who are self-employed or work in the gig economy send money internationally, accounting for more than any other age group.

Among those who sent an international payment in the past 12 months, gig workers were significantly more likely to send international payments regularly (62%) than non-gig workers (26%). The gig economy is a key employment source for more than one in ten working Canadians, of which 21% rely on gig work as their primary source of income and 65% rely on it to supplement another source of income. As Canada’s workforce continues to evolve rapidly with the increased adoption of freelance, contract, self-employed and gig work, sending money abroad with a regular cadence is likely to continue with the core of these workers. 

How international payments are most commonly sent

The two most widely used methods for sending money internationally from Canada are electronic transfers via a mobile banking app or online banking account at 31% and PayPal Transfer at 30%. Wire transfer was the next most widely used method at just 11%. Canadians consider the ease of making a transaction as a key consideration for all payment methods, while speed is a top reason for using wire transfers.

Introducing ISO 20022 to support more efficient international payments

The global payment sector is in the midst of a substantial evolution, transitioning from numerous legacy financial messaging data standards to embracing ISO 20022. ISO 20022 offers significant advantages over existing market standards.

As the use of international payments continues to increase in Canada, so does the importance of introducing ISO 20022 to our payment systems. By introducing richer and better quality data that travels with each payment, this standard will improve interoperability among payment systems, enable precise compliance procedures and facilitate seamless processing of international payments from start to finish.

Through their financial institutions, both businesses and consumers will benefit from more streamlined payment processing and enhanced operational efficiencies that lead to cost savings. Enhanced visibility into financial transactions and access to more value-added services, thanks to increased accompanying quality data, will benefit both parties.

As part of our work to bring easier, smarter and safer payments to all Canadians through our members, Payments Canada is leading the multi-year task of implementing and supporting the new ISO 20022 standard in Canada. 

Learn more about the benefits of ISO 20022 and the work Payments Canada is doing to introduce this global standard to payments in Canada at The Payments Canada SUMMIT, taking place from May 29-31, 2024, in Toronto. On Day 1, I will be moderating a breakout session, Empowering corporates and banks: unleashing the benefits of ISO 20022, alongside subject matter experts from Scotiabank, ADP and TD Bank. Registration is still open and I hope to see you there!

The post With more Canadians sending international payments than ever before, the need for ISO 20022 has never been greater appeared first on Trade Finance Global.

Canada can leverage its remarkable cultural diversity to drive a similar diversity in the suppliers to its many industries and thus encourage a more inclusive economy. In doing so, it can help illuminate a pathway for other diverse countries and help power economic growth, social stability, and general prosperity.

What is supplier diversity?

As per The Conference Board of Canada, a diverse supplier is a business that is at least 51% owned, operated, and controlled by either women, members of an indigenous community (for example, First Nations, Inuit, or Metis people), members of a visible minority group or members of the lesbian, gay, bisexual, and transgender (LGBTQ2+) community.

Supplier diversity allows diverse firms, often small businesses, to enhance existing jobs, create new ones, increase income and wages, and contribute more to tax revenue, thereby promoting economic growth in both the local community and the broader economy. 

Current landscape in Canada

Despite Canada’s multiculturalism — a policy that began in the 1970s and has evolved — efforts to encourage diversity in suppliers have only gained momentum in recent years, while it has been a long-standing tradition in the United States. 

The latter’s lead in this area can be traced back to the civil rights movement of the 1950s and 1960s that led to legislation during the administration of President Richard Nixon in the early 1970s. 

Canadian suppliers face several core challenges, including a lack of mandates, awareness, capital, and resources. And until recently the country’s stated goals or targets have been limited, except for a 5% target in procurement for indigenous suppliers. 

As such, they have failed to signal to the market that it should promote policies to encourage supplier diversity. Incentives that are in place requiring diverse procurement initiatives are inadequate, and often too narrow in scope or reach, such as the Atlantic Accord for oil and gas resource management in the Maritime provinces on the Atlantic coast. 

Nonetheless, recent initiatives are making headway. These include the Women Entrepreneurship Strategy aimed to boost financing, talent, network, and expertise for women-owned businesses. Similarly, the rollout of financing by the Federation of African Canadian Economics, which administers the Black Entrepreneurship Fund, has driven wealth creation for black-owned businesses. 

Investment in the 2SLGTBQI+ Entrepreneurship Program has enabled businesses from that community to benefit from business scale-up, ecosystem funds, and knowledge hubs. These government advancements will be pivotal in reducing barriers and building a more inclusive economy. 

Awareness is another issue. 

Many companies perceive the inclusion of diverse suppliers to be impractical due to perceived costs and timing issues surrounding certification. Even once the right suppliers are found, these may face difficulties due to undercapitalisation and limited capacity to deliver goods and services to geographically dispersed companies. 

With more dialogue emphasising the benefits and opportunities of supplier diversity, leaders of companies are taking a hands-on approach to get suppliers accredited and streamline processes to get new suppliers on board. 

They have observed that increasing representation will aid in job creation, community development, and wealth distribution. The alignment of company strategy with supplier diversity under the broader umbrella of corporate social responsibility, rather than operating in a separate group, will be important in extending touch points for greater impact. 

Access to financing and mentorship programmes has been likewise inadequate, leaving smaller suppliers without operational expertise to build business capabilities and networks to foster strong relationships with various levels of government and companies. 

New efforts are giving impetus to get certifying organisations to accredit suppliers, connect companies, and deliver training via networking events and activities. 

For example, the Supplier Diversity Alliance Canada supports and informs governments, companies, and relevant stakeholders about the significance of inclusive procurement policies and practices. Under the alliance, specialised organisations — the Canadian Aboriginal and Minority Supplier Council, the Canadian Gay and Lesbian Chamber of Commerce, and the Inclusive Workplace and Supply Council of Canada — will continue to play a critical role in exposing suppliers to unique opportunities and contracts.

Figure 1: Supplier Diversity Barriers Globally

Supplier diversity as a growth lever

By advancing supplier diversity programmes, companies will improve competitiveness, broaden access to new markets, and enrich their reputations. 

To improve competitiveness, governments and companies can minimise concentration risk by working with additional suppliers from a qualified pool, enhancing product and service quality, and driving down costs. 

A wider supplier base will also enable companies to have resilient and agile supply chains to deal with unforeseen events. For example, the City of Toronto paved the way to supplier diversity by forming a strategy to include low-dollar value contracts, giving diverse suppliers, usually smaller, the chance to participate in government procurement. 

In broadening market access, working with diverse suppliers provides a gateway for companies to enter new markets, opening new sources of revenue. Moreover, such practices encourage consumers to buy.      

A survey by The Female Quotient in partnership with Google and Ipsos, examining how inclusive ads affect consumer behaviour, revealed that 64% of those surveyed would take some sort of action after seeing an ad they considered to be diverse or inclusive. This percentage was even higher among underrepresented groups.  

Companies with supplier diversity programmes, meanwhile, are more likely to attract and retain diverse employees as they can see their employers prioritising diversity, equity, and inclusion practices in the workplace.

This would translate to higher positions in key rankings, such as Canada’s Best Diversity Employers by Mediacorp, Forbes’s Canada’s Best Employers for Diversity, HRD’s The Most Diverse and Inclusive Companies in Canada etc.  

Figure 2: Supplier Diversity Drivers in Canada 

In short, supplier diversity programmes can be part of broader efforts to overcome socioeconomic issues including discrimination or prejudice. At the same time, they can yield financial and non-financial benefits to the companies that embrace them. 

The future of supplier diversity is undoubtedly global. It fits into the S category of the environmental, social, and governance (ESG) equation. It’s about more than being suitable for ESG; businesses have an upside in doing the right thing.

Recent developments have shown that mutually beneficial relationships can generate value if stakeholders continue to build on the early foundations. This can be achieved with appropriate incentives, measures of success, and accountability.

By weaving social responsibility and strategic business practices and tailoring their implementation by factoring the local social, cultural, and economic contexts with global supply chain partners, Canadian businesses can help drive innovation, foster social equity, and create an inclusive future for all.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any organisation.

The post Advancing supplier diversity in Canada appeared first on Trade Finance Global.

Initiated in March 2022, these discussions are part of Britain’s broader efforts to establish trade agreements globally following its exit from the European Union, which led to its exclusion from the EU’s established free trade agreements.

“We are disappointed that negotiations with the UK are being paused. Their decision to continue to maintain market access barriers for our agriculture industry and unwillingness to reach a mutual agreement has only stalled negotiations,” a spokesperson for Canadian Trade Minister Mary Ng remarked.

Ng has reached out to Britain’s business minister Kemi Badenoch to convey Canada’s dissatisfaction, the spokesperson further noted.

Canadian agriculturists have raised concerns about being effectively barred from the British beef market due to regulations that prohibit the use of hormones.

A British government spokesperson said, “We reserve the right to pause negotiations with any country if progress is not being made.”

“We have always said we will only negotiate trade deals that deliver for the British people,” they added.

“We remain open to restarting talks with Canada in the future to build a stronger trading relationship”.

Following Britain’s departure from the EU trade bloc at the end of 2020, Canada extended its existing trade arrangements to maintain free trade continuity.

A specific arrangement concerning cheese access, which has now lapsed, was singled out by a Canadian government official, who attributed the absence of an extension deal to Britain’s inaction.

“Unfortunately, Britain did not act as fast as it should have in negotiations, and expects Canada to just give (it) these things,” the official, preferring anonymity due to lack of authorisation to speak to the press, expressed.

Both nations have indicated their readiness to recommence discussions. As per British official figures, the total bilateral trade in goods and services amounted to £25.9 billion ($32.9 billion) for the year ending June 30, 2023, placing Canada as Britain’s 18th largest trade partner.

Canadian statistics reveal that trade with Britain in 2022 constituted only 2.7% of Canada’s total trade.

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The Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, has announced that Export Development Canada (EDC) surpassed its own expectations by providing over $12 billion in support to cleantech businesses in 2023. This achievement comes two years earlier than the initially planned target date.

Back in 2022, EDC had set a goal to offer $10 billion in aid to cleantech enterprises by 2025. By the end of 2023, EDC had not only met but exceeded this goal, offering more than $12 billion through various financing and insurance solutions.

This support was extended to over 440 cleantech businesses, a significant increase from $8.8 billion and 392 companies in 2022. Since 2012, EDC’s contribution to cleantech exports has nearly reached $41 billion, establishing it as a prominent backer of the Canadian cleantech sector.

EDC plays a vital role in aiding Canadian businesses to compete in global markets. It offers essential financial products, services, and expertise to help businesses expand from local entities to significant global players. EDC is committed to fostering a robust, sustainable, and inclusive economy in Canada and supporting quality jobs for the middle class as the nation’s export credit agency.

Mary Ng, Minister of Export Promotion, International Trade and Economic Development said, “EDC’s dedication and support for Canada’s cleantech businesses is a cornerstone of growing a clean economy and creating good middle-class jobs. This type of leadership and collaboration on cleantech is key to our efforts to tackle climate change, increase energy security and build a sustainable, inclusive and resilient Canadian economy of the future.”

Mairead Lavery, President and CEO, Export Development Canada said, “The ingenuity and innovation we see among Canada’s cleantech companies play a critical role in supporting the global transition to a low-carbon economy. It’s through the success of our customers—Canadian exporters—that we at EDC can make the greatest impact in the transition. With the early achievement of this target, we are proud to be supporting the accelerated international growth and recognition of Canadian cleantech, while progressing on our commitment to reach net zero by 2050.”

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Live from Sibos in Toronto, TFG’s Deepesh Patel spoke with Tracey Black, the CEO and President of Payments Canada. In a financial sector renowned for its stability and robust regulatory environment, Payments Canada has been entrusted with the pivotal task of modernising payment systems.

Tracey Black explained that their modernisation initiative aligns with the existing regulatory framework and the imperative of maintaining a resilient payment ecosystem in Canada. Given the rapid evolution of payment methods, staying ahead is crucial. She emphasised their significant modernisation efforts since 2016, including updates to batch payment systems, replacement of the high-value payment system, and the ongoing development of a real-time payment system.

Moreover, they have introduced the ISO 2022 message standard on the high-value payment system, with plans to educate and support the ecosystem for its widespread adoption. Regarding the surge in diverse payment methods, Tracey expressed encouragement for the innovation seen in Canada, particularly in the realm of digital payments. 

She anticipates that with the introduction of the ISO payment standard and real-time payments, new and unforeseen payment experiences and products will emerge, enhancing the landscape of financial transactions in Canada. This conversation underscores the pivotal role of Payments Canada in navigating the evolving payments landscape to benefit both consumers and businesses.

Hear from Tracey Black

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